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Fully managed VPS accounts might one day take over the reseller hosting market as we know it today, but things don't move very fast in that direction. Reseller hosting as it is, is a time tested solution, but sometime in the future all shared hosting solutions (including reseller hosting) will be VPS based. At least that's my opinion, or what I'm hoping for.

VPS is like like a combination of reseller hosting and dedicated server. Overall on a lower cost, you get full root access like a dedicated box, ability to add software as needed and most of the responsibility you would have with a dedicated server.

VPS technology still has its problems.
A reseller account of equivilent capabilities and specs will outperform the VPS on a server. This is what I found in my experiences. The only positive side I see of VPS is the fact that you are isolated from your neighbours.

except if you only use it for just webhosting, a reseller plan is alot smarter then, because the management, and the quality of your package is then being taken care of by an experienced admin! A VPS can take its own hosting offline, but a reseller cant.

The ease of use with the reseller plan is so much greater then with VPS, that I believe most people when just starting out will choose to start with the reseller over the VPS. Thats just the ease, not counting the larger price tags.